Xin Lang Cai Jing·2025-10-29 06:36Core Viewpoint - The company reported a strong performance in Q3 2025, with revenue reaching 8.478 billion yuan, marking a year-on-year increase of 23.69% and a quarter-on-quarter increase of 16.77% [1] Financial Performance - Revenue reached a record high in Q3 2025, driven by favorable exchange rate gains and outpacing automotive sales and aluminum price growth [2] - Gross margin stood at 9.3%, slightly down by 0.1 percentage points year-on-year and 0.3 percentage points quarter-on-quarter, primarily due to the ramp-up of the Mexican factory and rising aluminum prices [2] - Net profit margin was 2.6%, up by 1.0 percentage points year-on-year but down by 0.7 percentage points quarter-on-quarter [2] - The company maintained its net profit forecasts for 2025 and 2026 at 860 million yuan and 1.111 billion yuan, respectively, with a current stock price corresponding to P/E ratios of 18.1x and 14.0x for 2025 and 2026 [4] Business Development - The wheel business is entering a harvest phase, with the Mexican factory's second phase ramping up production and expected to turn profitable [2] - Plans to establish a third aluminum alloy wheel factory in Thailand and continue expanding production capacity in Mexico are underway, which may help mitigate tariff risks and enhance global competitiveness [2] - The company made significant progress in its robotics business through a strategic partnership with Weijing Intelligent, providing aluminum-magnesium alloy materials and lightweight components [3] - New materials are being developed for various applications, including automotive thermal management, aerospace, and semiconductor manufacturing [3] Valuation and Target Price - The target price has been raised by 47.6% to 31 yuan, reflecting an upward adjustment in valuation due to new business developments, with corresponding P/E ratios of 23.0x and 17.8x for 2025 and 2026 [4]